A subsidiary of Howard Midstream Energy Partners LLC is planning a 287-mile refined products pipeline from South Texas to northern Mexico.
Dos Águilas LLC plans to permit, construct and operate the proposed Dos Águilas project, an open access system of refined products terminals and pipelines spanning from Corpus Christi, Texas, to northern Mexico, according to a Jan. 28 Howard Energy announcement. The project will offer direct and seamless transportation services for gasoline, ultra-low sulfur diesel and jet fuel from the Corpus Christi refinery complex to Laredo, Texas, and to northern Mexico markets through deliveries to Nuevo Laredo, Tamaulipas and Santa Catarina, Nuevo León, near Monterrey. Pending all government approvals, the project is expected to be in-service in the first quarter of 2018.
The Dos Águilas project includes four new refined liquids terminals with a total combined capacity of 1.15 million barrels and approximately 287 miles of 12-in. pipeline with 72,000 barrels per day (bpd) of initial capacity and the capability to expand to up to 90,000 bpd.
In the United States, the project consists of a new terminal in Robstown, Texas, near Corpus Christi and a 141-mile pipeline between Robstown and a new terminal in Laredo. The project also includes 10 miles of pipeline from Laredo to the Rio Grande River and border crossing facilities.
In Mexico, the project will consist of 12 miles of pipeline from the Rio Grande River to a new terminal in Nuevo Laredo and 124 miles of pipeline from Nuevo Laredo to a new terminal in Santa Catarina, near Monterrey. The Dos Águilas project is expected to cost approximately $500 million dollars. The U.S. and Mexican governmental processes have commenced.
Dos Águilas intends to launch simultaneous open seasons for the U.S. and Mexican pipelines in the first quarter of this year to solicit indications of interest for transportation services.
“The Dos Águilas project is another example of how the 2013 Energy Reform in Mexico is creating a competitive market environment and lowering prices for Mexican consumers,” said Howard Energy Partners CEO Mike Howard. “Additionally, by directly connecting refineries in Corpus Christi with multiple markets in northern Mexico, we are essentially opening the door to a whole new customer base for Texas refiners.
“Howard Energy has always operated under the philosophy that what is good for Mexico is good for South Texas,” said Howard. “We continue to believe in this philosophy and the Dos Águilas project is our second major venture in Mexico, along with our cross-border Nueva Era natural gas pipeline which is expected to be in-service next year. These two projects are testaments to increasing customer demand, our deep-rooted belief in the growing Mexican energy market, and the great partnerships and relationships we have developed there.”
In 2015 Howard Energy announced plans to construct the Nueva Era Pipeline, a natural gas pipeline directly connecting the company’s Webb County Hub in South Texas to Escobedo and Monterrey in Nuevo León, Mexico. The approximately 200-mile Nueva Era Pipeline is expected to be in-service in June 2017. For more information on the Nueva Era Pipeline, visit pipelinenuevaera.com.
San Antonio-based Howard Midstream Energy Partners LLC (d/b/a Howard Energy Partners) is an independent midstream energy company, owning and operating natural gas gathering and transportation pipelines, natural gas liquids processing plants, rail facilities, liquid storage terminals, deep-water port facilities and other related midstream assets in Texas and Pennsylvania. The company has corporate offices in San Antonio, Houston and Mexico City.